Treasuries extended declines, heading for the biggest weekly retreat since October, fueled by speculation that a resilient labour market may delay interest-rate cuts by the U.S. Federal Reserve. Stocks sank and the U.S. dollar strengthened for a sixth day.
Traders are waiting for the U.S. nonfarm payroll report, which is expected to show that employers added 175,000 positions last month. While that’s a slower hiring pace than November, it would still reflect economic strength and add to evidence that wagers on easier monetary policy have gone too far.
Swaps traders now see around a 65 per cent chance the Fed will cut rates by the Fed’s March meeting, down from almost fully pricing such a move a week ago.
As a result, investors are backtracking on some of last year’s most popular trades. Futures on the tech-heavy Nasdaq 100 Index slid 0.4 per cent on Friday and the index has lost more than three per cent so far this…
